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Amazon's Price Hikes Dwarf Walmart, Target
29 Nov
Summary
- Amazon prices rose nearly 13% on average this year.
- Apparel and home goods saw the largest price increases.
- Third-party sellers on Amazon face higher tariff costs.
Research indicates that Amazon has raised prices considerably more than its retail competitors, Walmart and Target. As of September, Amazon's average price increase was close to 13%, while Target and Walmart saw hikes of approximately 6% and 5%, respectively. These price hikes were most pronounced in the apparel and home goods categories, with electronics, furniture, and appliances also affected.
The primary driver behind Amazon's steeper price increases appears to be its business model, which heavily involves third-party sellers. These smaller sellers are less equipped to absorb rising costs associated with tariffs, unlike larger retailers that can leverage scale and private labels to mitigate such impacts.
These rising costs are adding to consumer stress, particularly with the holiday season approaching. A significant percentage of Americans report being concerned about holiday spending due to economic factors like tariffs and inflation. Many are adapting by budgeting, reducing gift lists, shopping at discount stores, and using rewards programs.
